Is the CFO role changing?

New research from Sage suggests the CFO role is changing, with finance leaders facing increased responsibilities as they take a more holistic approach and rely more heavily on data to meet wider strategic priorities.

The Redefined CFO study, also known as CFO 4.0, gathered data from almost 2000 respondents. It found that through the last year, Australian CFOs have taken on more in varying areas including identifying strategy and future planning (80%), digital transformation (80%) and diversity, equity and inclusion initiatives (78%).

Sage said that stepping out from the shadow of the CEO, the CFO has become a hub of business information — diversifying their expertise, recruiting the right talent and ensuring they implement emerging technologies and purpose-driven programs to keep their organisations ahead of the curve.

Mastery of technology key in new breed of CFOs

The study found that technology continues to shape the responsibilities and success of CFOs.

Ninety-three per cent of respondents said that CFOs must have the skills necessary to push their organisation forward in its digital transformation. To meet the demands of today’s constantly evolving business landscape, the research found that CFOs have embraced non-traditional skills and responsibilities.

Among the top three priorities for Australian CFOs are integrating emerging technologies such as AI and machine learning (15%); the upgrade of software and technology solutions to drive digitalisation (14%); and hiring new talent (14%).

CFOs identify the ability to respond and integrate new and emerging technologies as the single greatest issue holding their organisation back. These technologies are perceived to be key in creating or maintaining a competitive advantage (44%); financial forecasting (42%); and business-wide trend forecasting (41%).

The study also revealed that finance teams are now prioritising technology skills over financial experience in recruitment, and it is impacting the hunt for new skills. Thirty-eight per cent of CFOs are looking for professionals with financial expertise but plan to train them on using big data or AI; and 34% seek those with coding experience.

In Australia, 85% of CFOs also expressed ambitions to eventually become CEO of their organisation. Fifty-eight per cent feel that CFOs could perform the job of CEOs.

“CFOs now have a bigger seat at the table, and increasingly, we are seeing that they are owning a lot of the organisation’s technology journey,” said Justus Siage CPA, Solutions Engineering Manager, Sage Australia.

“They have very specialised skills in financial modelling and return-on-investment (ROI) analysis, compared to other areas of the business.”

The global research report is available for download here.

Image credit: iStock.com/putilich